Despite economic instability, there is a continuing increase in service provider capabilities and a growing interest in Procurement Outsourcing. The growth of emerging economies, low availability of trained supply management...
professionals and the need to drive efficiencies and effectiveness in the Supply Chain are key drivers of this increase. No longer synonymous with transactional procurement, strategic aspects including category management, strategic sourcing, supplier management, analytics, and knowledge management all form part of Procurement Outsourcing. Our experts examine how the landscape has evolved and the road that lies ahead.
Published with permission of Technology Partners International, Inc.
Procurement outsourcing is gaining importance due to its ability to impact operations across an organization. Infosys' experts discuss the trends in procurement outsourcing, the functions within procurement that lend...
themselves to the global delivery model, and key benefits. They also provide a road map for implementing an outsourced process. The white paper shares the experience of a heavy equipment manufacturer that adopted procurement outsourcing to standardize workflows and realize cost savings.
Enterprise Resource Planning systems have been the key automation enablers of procurement function. However, the challenge to reduce procurement cost can be further addressed at various stages of sourcing and procurement cycle, through use...
of specific special purpose automated tools (which may be decision support, process accelerators or collaboration tools).Special purpose tools are generally used for a niche set of activities such as spend reporting, spend analysis, (master) data cleansing, cost policy compliance and control. Organizations can evaluate, implement and deploy such solutions entirely through internal efforts, but now with evolution of service offerings by Business Process Outsourcing organizations, using their services can create additional advantages - of service knowledge, expertise and cost.
Infosys' expert shares a successful sourcing strategy by discussing a real life case of electrical cables procurement. He demonstrates how to achieve cost savings through right sourcing, linking price to raw materials price movement and reducing the Total Cost of Ownership.
Reproduced with the permission of the Sourcing Interests Group (SIG)
The challenging business environment compels organizations to re-think their existing operating structures and innovate. They realize that the potential of Procurement Outsourcing (PO) is not limited to cost arbitrage, but effective management of overall spend, which can...
contribute directly to the bottom line. Infosys' expert proposes a Source-to-Pay Platform to help organizations realize value rapidly and gain a strategic competitive advantage without investing huge capital.